INVESTOR ACKNOWLEDGEMENT
When you sign this Investment Account Application, you confirm that you understand and agree that:
- You are applying to establish an investment account with Hoovest Wealth Management, a division of Qwest Investment Fund Management Ltd. (referred to as “HOOVEST”, we, our orus).
- The information you have given us is correct. You will advise us of any changes and provide any additional information we may
- The Investor(s) is/are the only person(s) who can give us instructions on, or receive information about your Investment Account, unless you advise us otherwise.Ifyouare applying for a joint account, we will accept and act upon instruction from any one of you. This includes instructions for withdrawals. If the account is registered as a joint account with right of survivorship and one of you dies, the survivor may still make
- Securities purchased with a non-certified cheque drawn from a Canadian financial institution may not be sold or redeemed for ten business days following the Securities purchased with a non-certified cheque drawn from a U.S. financial institution may not be sold or redeemed for 30 business days following the transaction. A cheque requiring international clearancewill not be accepted for purchase unless it is certified or a banker’s draft, issued in Canadian dollars.
- The Investor(s) distributions from any investment funds held in the investment account will be
- We may record telephone calls for regulatory and client service quality purposes.
ACCOUNT INFORMATION / INITIAL DEPOSIT
All accounts: You MUST provide HOOVEST with a blank cheque marked VOID so that an original cheque corresponding to your banking information is on file.
The federal Proceeds of Crime (Money Laundering) and Terrorist Financing Act requires HOOVEST to verify each investor’s identity using a variety of options. The options suggested for investors who meet in person with a representative of HOOVEST, and for Canadian resident investors who do NOT meet in person with a representative of HOOVEST are described above under Account Information. If you are an investor who is not resident in Canada or is otherwise unable to provide the information described, HOOVEST will be required to verify your identity using other acceptable means prior to permitting you to open an investment account. Please contact HOOVEST using the information below under How to Contact Us to confirm the steps required to comply with these alternative requirements.
Additional requirements for joint accounts: Joint accounts require additional measures to ensure federal identity requirements are met.
- If yourinitialdeposit will be made by cheque, the cheque must be signed by both parties listed as owners of the
- Ifyourinitial deposit will not be made by cheque, you must instead provide HOOVEST with one of the following:
- a $1.00 cheque from a joint bank account (signed by BOTH clients), made payable to Qwest Investment Fund Management Ltd.;or
- two $1.00 cheques from a joint bank account (signed individually by each client), made payable to Qwest Investment Fund Management Ltd.; or
- two $1.00 cheques from individual bank accounts belonging to each client, made payable to Qwest Investment Fund Management
RISK TOLERANCE
There is no such thing as risk-free investing. For your accounts, we ask you to define your risk tolerance as “high”, “medium to high”, “moderate”, “low to medium”, or “low”. Risk tolerance is defined as your comfort level with fluctuations in the value of your investments. It can be quantified as the amount of volatility that you can accept in an investment, or the percentage decline in the value of your portfolio under normal market conditions. Risk tolerance differs from person to person. A conservative (low-risk) investor is primarily concerned with safety of capital and is willing to accept lower long-term returns in exchange for greater peace of mind. An aggressive (high-risk) investor is willing to accept more short-term volatility in exchange for potential higher long-term returns.
- High: You are able to tolerate seeing your account decline over 25% - 35% in any given calendar year. You are able to accept over 20% volatility over any 3-year
- Medium to high: You are able to tolerate seeing your account decline 20% - 25% in any given calendar year. You are able to accept between 15% - 20% volatility over any 3-year
- Medium: You are able to tolerate seeing your account decline 15% - 20% in any given calendar year. You are able to accept between 10% - 15% volatility over any 3-year
- Low to medium: You are able to tolerate seeing your account decline 10% - 15% in any given calendar year. You are able to accept between 5% - 10% volatility over any 3-year
- Low:Youare able to tolerate seeing your account decline up to 10% in any given calendar year. You are able to accept less than 5% volatility over any 3-year
INVESTMENT OBJECTIVE
Your objective may be defined as “growth”, “income”, or “balanced”. Please
review these options and select the one that best reflects your objectives.
- Growth: You are seeking capital appreciation over the long-term, and current income is not a high priority for you. This may lead you to hold a relatively high proportion of
- Income: You are predominantly focused on the generation of current incomeinthe form of interest and dividends and are less concerned with long-term capital appreciation. This may lead you to hold a relatively high proportion of fixed income assets (including bonds and money market instruments), and a lowpercentage of
- Balanced: You seek a blend of income (i.e. interest and dividends) and growth (i.e. long-term capitalappreciation).
TIME HORIZON
Your investment time horizon is the period between now and the point when you will need to use the majority of the money you have accumulated. You shouldconsider your own investment time horizon when considering aparticular investment.
Clients with a time horizon of greater than three years typically have a greater degree of flexibility when building their portfolios (although their risk tolerance must also be considered).
LEVERAGED INVESTING
Using borrowed money to finance the purchase of securities, including
investment fund units, involves greater risk than a purchase using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines.
Securities regulators require the delivery of this disclosure to investors who are considering borrowing to buy securities, including investments funds (“leveraged investing”). The examples used relate to the purchase of investment funds but are applicable to other securities aswell.
Investment funds may be purchased using available cash, or a combination of cash and borrowed money. If cash is used to pay for the investment fund purchase in full,thepercentage gain (or loss) will equal the percentage increase (or decrease) in value of the fund units. The purchase of investment funds using borrowed money magnifies the gain (or loss) on the cash invested. This effect is called “leveraging”. For example, assume you purchase $100,000 worth of fund units and pay for it with $25,000 fromavailable cash and $75,000 borrowed money. If the value of the fund units declines by 10% to $90,000, your equity interest (the difference between the total value of the fund units and the amount borrowed) will have declined by 40%, i.e. from $25,000 to $15,000.
It is important that an investor proposing to borrow for the purchase of investment funds be aware that a leveraged purchase involves greater risk than a purchase using cash resources only. The extent to which a leverage purchase involves undue risk varies for each purchaser depending on the circumstances of the purchaser and the investment fund purchased.
It is also important that the investor be aware of the terms of any loan secured by investment fund units. The lender may require that the amount outstanding on the loan notrise above an agreed percentage of the market value of the units. Should this occur, the borrower must pay down the loan or sell enough units to return the loan to the agreedupon percentage relationship. In the example above, the lender may require that the loan not exceed 75% of the market value of the units. For a market value of $90,000, theborrower must reduce the loan to $67,500 (75% of
$90,000). If the borrower does not have cash available, he or she would have to sell units at a loss to provide the money to reduce the loan.
Money is, of course, also required to pay interest on the loan. Under these circumstances, investors who leverage their investment are advised to have adequate financialresources available both to pay interest and also to reduce the loan if the borrowing arrangements require such a payment.
HOOVEST is not a lending institution and does not provide loans.
Risk of Borrowing to Invest
Here are some risks and factors that you should consider before borrowing to invest:
Is it Right for You?
Borrowing money to invest is risky. You should only consider borrowing to invest if:
- You are comfortable with taking
- Youarecomfortable taking on debt to buy investments that may go up or down in
- You are investing for thelong-term.
- You have a stable
You should not borrow to invest if:
- You have a low tolerance for
- You are investing for a short period of
- Youintendtorely on income from the investments to pay living
- You intend to rely on income from the investments to repay the loan. If thisincomestops or decreases you may not be able to pay back the
You Can End Up Losing Money
- Iftheinvestments go down in value and you have borrowed money, your losses would be larger than had you invested using your own
- Whether your investments make money or not you will still have to pay backtheloan plus You may have to sell other assets or use money you had set aside for other purposes to pay back the loan.
- Ifyouused your home as security for the loan, you may lose your
- Evenifthe investments go up in value, you may still not make enough money to cover the costs of
Tax Considerations
- You should not borrow to invest just to receive a tax
- Interestcostsare not always tax You may not be entitled to a tax deduction and may be reassessed for past deductions. You may want to consult a tax professional to determine whether your interest costs will be deductible before borrowing to invest.
Your advisor should discuss with you the risks of borrowing to invest.
COLLECTION AND USE OF PERSONAL INFORMATION Collecting Your Personal Information
HOOVEST may from time to time collect financial and other information about you such as:
- informationestablishingyour identity (for example, name, address, phone number, date of birth, etc.) and your personal background;
- information related to transactions arising from your relationship with and through HOOVEST;
- information you provide on an application for any of HOOVEST’s products andservices;
- information for the provision of products and
HOOVEST limits the collection of personal information from you to that which is permitted by law. By signingthis form, you are providing HOOVEST with your consent to obtain your credit report.
Using Your Personal Information
This information may be used from time to time for the following purposes:
- to verify your identity and investigate your personalbackground;
- toprovideinvestment services such as opening, operating and managing your accounts, process your instructions and take orders from you, provide advice to you on investment matters and provide you with products and services you may request;
- to better understand your financialsituation;
- to determine your eligibility for products and services HOOVESToffers;
- tohelp HOOVESTbetter understand the current and future needs of its clients;
- to communicate to you any benefit, feature and other information about products and services you have withHOOVEST;
- tohelpHOOVEST better manage its business and your relationship with HOOVEST;
- tomaintainthe accuracyand integrityof information held bya credit reporting agency; and
- as required or permitted by
Periodically, HOOVEST may ask for feedback from our clients on services it is providing or are considering providing.
For these purposes, HOOVEST may make this information available to its employees, agents and service providers, who are required to maintain the confidentiality of thisinformation.
There are situations specific to the investment funds business where portfolio managers, investment funds, investment fund management companies, dealers and service providers will disclose personal information that is necessary in the course of providing their services to or on behalf of HOOVEST clients, and for regulatory purposes. Forexample, personal information may be disclosed to:
- Information Services Providers: members of the investment funds industry that have access for the purposes of providing tax statements, clientstatementsandfulfilling client transactions;
- ServicesProviders:businesses that provide other goods and services to investment investment fund management companies, portfolio managers, dealers and/or their clients, such as data processors and record keepers;
- Intermediaries: such as trusteesandcustodians;
- RegulatoryOrganizations:these will include the Mutual Fund Dealers Association of Canada (a self-regulatory organization) and Canadian provincial and territorial securities
In the event HOOVEST’s service provider is located outside of Canada, the service provider is bound by, and the information may be disclosed in accordance with, the laws of the jurisdiction in which the service provider is located. Upon your request, HOOVEST may give the above information to other persons.
If HOOVEST has your social insurance number, HOOVEST may use it for tax related purposes and/or provide it to the appropriate government agencies.
Other Uses of Your Personal Information
HOOVEST may communicate with you through various channels, including telephone, computer or mail, using the contact information you have provided.
Your Right to Access Your Personal Information
You may obtain access to the information HOOVEST holds about you at any time and review its content and accuracy, and have it amended as appropriate; however,access may be restricted as permitted or required by law. To request access to such information or to request that the information not be used for any or all of the purposes outlined in Other Uses of Your Personal Information, you may do so now, or at any time in the future, by contacting HOOVEST. See How to Contact Us below.
HOW TO CONTACT US
Mail/courier: Hoovest Wealth Management, a division of Qwest Investment Fund Management Ltd. Four Bentall Centre
1055 Dunsmuir Street
Suite 732, PO Box 49256 Vancouver BC V7X 1L2 Canada
Phone: +1-604-601-5804
Toll free: +1-866-602-1142 (ext.1) Facsimile: +1-604-689-8892 Email:
Website: www.hoovestwealth.com
